JPMorgan Chase to Delay Some Foreclosures to Review Documents
Sep 29th 2010 7:06PM
Updated Sep 29th 2010 7:48PM
JPMorgan Chase & Co. (JPM) will delay foreclosing on some properties in order to review affidavits that were signed by employees who didn't verify related files, making the company at least the second bank in recent weeks to suspend the foreclosure process on properties in order to better examine documents.
JPMorgan Chase employees in some cases didn't verify affidavits that identify the original mortgage-note holder and signed files reviewed by other employees, according to company spokesman Tom Kelly. He added that the affidavits' loan information is accurate and that the documents were prepared by "appropriate personnel."
The bank is the second in recent weeks to suspend foreclosures on some properties to review affadavits. Ally Bank subsidiary GMAC Mortgage is also halting some foreclosures after it was disclosed that affidavits were signed by people who didn't personally know if the information in the affidavits were true, and at times, didn't have the affadavits notarized.
Bloomberg News reported earlier this week that a JPMorgan Chase employee testified in a deposition that she was one of eight managers who combined to sign some 18,000 documents a month.
The JPMorgan review will take a few weeks, and the company has asked judges not to rule on homeowners until the review is complete, according to Kelly.